CHAPTER THREE

THE NATIONAL AND GLOBAL CONTEXT

Objectives of this chapter

• Explore the role of the government as an employer

• Examine the impact of the European Union on employee relations

• Consider the role of key external bodies in employee relations

• Look at the impact of globalisation on employee relations

• Consider the specific issues affecting multinational organisations.

The government as an employer

• Civil Service

• Local authority workers

• State agencies

• Nationalised industries

Pay and the government

• Perception of good benefits

• Perception of poor levels of pay

• Winter of Discontent 1978/79

• Standing Commission on Pay Comparability

• Individualism

Individualistic society

• Individuals buying shares in nationalised industries

• Increase in home ownership

• Increased personal wealth

‘The Third Way’

• Equal worth

• Opportunity for all

• Responsibility

• Community

Target-setting

• Private sector makes a profit, public sector does not

• 1982 Financial Management Initiative• 1991 Citizens Charter• League tables• Measurement of performance• Raises levels of skill and performance• Can distract from priorities

Impact of the European Union

• Promote a harmonious and balanced development of economic activities

• Respect the environment• Promote high levels of employment and

social protection• Raise the standard of living and quality of

life• Promote economic and social cohesion

and solidarity among member states

Four main sources of European law

• Treaties

• Regulations

• Directives

• Decisions

Key institutions

• European Commission

• European Parliament

• Council of the European Union

• European Court of Justice

• European Court of Human Rights

External bodies

• Acas

• Central Arbitration Committee

• Equal Opportunities Commission

• Commission for Racial Equality

• Disability Rights Commission

Globalisation

• Opening up of an organisation to operate on an international basis

• Technology has facilitated globalisation

• Over 80% of world trade comes from multinational corporations

• The top 200 multinational corporations control around one-third of global production

Forces that support global harmonisation

• Co-operating political systems

• Open world economy with a reduction of trade barriers

• Increased awareness of differences in culture and consumer tastes

• Developments in communications

• Common concerns

Forces that oppose global harmonisation

• Uneven distribution of resources

• Contrasting stages of economic development

• Differing levels of education

• Conflicting cultures and/or values

• Differences in languages

Why is globalisation growing?

• Cannot rely on one market (ie home market)

• Need to grow

• Need to beat competitors

• Decreased costs from operating in other countries

Globalisation and employee relations

• Career development

• Job security

• Cost of labour

• Language barriers

• Remote management

Four stages of globalisation

• Domestic

• International

• Multinational

• Global

Hall’s three groups of employees

• Global group

• Locally loyal

• Matrixed middle